forms_of_business_organizationfandomcom-20200213-history
Group 4
Sole Proprietorship ─ Conrad 1. a description of the form of ownership - 3 points -This is the simplest form of a business structure. -This branch is owned by one person only who has all responsibility. -The business is not distinguished from the owner. 2. The advantages to the form of ownership - 3 points -Low start up fee- business takes a very small investment to begin -great freedom from regulation, the owner can create whatever they like for regulating their own business, -all profits are directly owned by the owner 3. The disadvantages to the form of ownership,- 3 points -Unlimited liability, If your business venture fails all debts acquired, liabilities, are your responsibility. -Profits taxed at a personal rate, if your business is successful you might need to pay a higher percentage. -Availability, if you are not available to run your business the business cannot operate any further. 4. The accounts unique to the form of ownership - 3 points To be assigned Conrad Partnership - Hamza Shazhad A business partnership is a specific type of legal relationship formed by the agreement of two or more individuals to carry on a business as co-owners.A partnership is a business with multiple owners, each of whom has invested in the business. Some partnerships include individuals who work in the business, while other partnerships may include partners who have limited participation and also limited liability for the debts and lawsuits against the business. Types of Partnerships The following are the most common forms of a business partnership. # A general partnership is composed of partners who participate in the day-to-day operations of the partnership are who have liability as owners for debts and lawsuits. There may also be limited partners # A limited partnership has one general partner who manages the business and one or more limited partners who don't participate in the operations of the partnership and who don't have liability. # A l'imited liability partnership' is similar to the limited partnership, but it may have several general partners. A partnership business has a lot of advantages. Some of them are * Shared cost of start-up. * Shared responsibilities and work. * Shared business risks and expenses. * Complementary skills and additional contacts of each partner can lead to the achievement of greater financial results together than would be possible apart. * Mutual support and motivation. Because partnership business involves sharing business expenses and other financial related topics it is a common form of business ownership that is common in new businesses. By forming a partnership this allows you to form an agreement with individuals with different types of skill sets that will help you in operating the business.There is also less risk involved because you are not using all your resources, instead it is split reducing potential risk. Partnership business also has certain disadvantages. * Shared profits * Shared decision making In a partnership business the profits generated form the business are shared between the owners. This reduce profits for you. Another disadvantage is that you do not have complete control over the business. Any decision made that involves the business are made cooperatively and take into account everyones opinion on certain decisions. It is common for partnership businesses to become corporations as they grow. Some famous corporations that were formed by a partnership business include. # Twitter # Ben & Jerry’s # Google # Apple # Microsoft # McDonald’s # Hewlett Packard # Warner Brothers Corporation ─ Guneetpal Bawa There are lot of corporations, some are very reputed such as Microsoft, GM (general Motors) even Google, but what is a corporation? A corporation is a business that is part of the law, and the law views the business as a separate entity from the owners. The profits the corporation makes is sent to the share holders in the way of dividends. There are many advantages of a corporation but the primary advantage is that there is limited liability. A corporation is a stand alone business which means that a shareholder is not liable for the assets and/or debts of the company. Another advantage is that a corporation has a very low chance when its owners do. Since the corporation is its own entity it will live even if the business's shareholders move on or if the company mergers.Which means that there would not be any major job losses. Another advantage of a corporation is that a corporation must record everything. From tax returns to board of director meetings everything must be recorded, this is good because if an employee does something that could affect the company such as betraying a contract there would be a paper trail leading that could save the company. But with advantages come disadvantages. One disadvantage of a corporation is that the government and their agencies monitors corporations very closely, which can pose a threat to the business, if in the future a company was to do something illegal such as committing fraud the government would most likely be the first to file a lawsuit or start an investigation. Another disadvantage is that corporations would need to hire lawyers and accountants as insurance, so that the company can be safe is a lawsuit were to be filed against the company. The last disadvantage would be that if the shareholders do not show any interest in company the management team would work without any real oversight from the owners which could decrease profits. Accounts unique to the organization is to be assigned. COOPERATIVE - ALIYAN BHATTI 1. A description of the form of ownership: * A cooperative is a private business organization * The business is owned and controlled by the people (customers or patrons) who use its products, supplies or services * Types of cooperative business include consumer cooperatives, producer cooperatives, marketing cooperatives, purchasing cooperatives ' '''2. The advantages to the form of ownership: * Members of cooperative businesses pay lower or stabilized prices for products and services because of the buying power of the cooperative * A member who purchases 10 percent of the products or services receives a return of 10 percent in benefits * Cooperative business members also benefit from shared ownership, which results in shared risk, both liability and financial, and reduced expenses for operational costs ' '3. The disadvantages to the form of ownership: * A cooperative business is too democratic, members who do not have much equity of the business get the same vote as members with a much higher amount of equity * Lack of Secrecy, a cooperative business has to submit its annual reports which make it difficult for it to maintain secrecy of its business affairs * There is usually limited distribution of profits to members of a cooperative business ' '''4. The accounts unique to the form of ownership * Cash * Banks * Capital